Musk's feud with Trump impacts Tesla's stock value and future prospects

From Nasdaq: 2025-07-02 09:02:00

Tesla stock has been volatile due to a feud between Elon Musk and Donald Trump. Trump’s tax bill threatens to remove EV tax credits and energy incentives that benefit Tesla. Musk and Trump’s public exchanges have impacted Tesla’s stock value, raising concerns about the company’s future without government support.

The escalating conflict between Musk and Trump has led to a sharp decline in Tesla’s market value and raised questions about the company’s reliance on government subsidies. The removal of tax credits and incentives could significantly impact Tesla’s ability to compete in the EV market and hinder its growth in the energy sector.

Tesla’s stock performance has lagged behind industry peers like Ford and General Motors, with a forward price-to-sales ratio that is significantly higher than the industry average. The potential loss of government subsidies and incentives could further dampen Tesla’s prospects and lead to a challenging future for the company in a competitive market environment.

Investors need to consider the implications of the Musk-Trump feud on Tesla’s stock value and long-term sustainability. With potential policy changes threatening Tesla’s financial incentives, the company may face tougher decisions ahead that could impact its growth and profitability in the EV and energy sectors.

Zacks Investment Research highlights the impact of the Musk-Trump conflict on Tesla’s stock performance and the broader implications for the company’s future in the automotive and energy markets. The clash between Musk and Trump has created uncertainty for investors and raised concerns about Tesla’s ability to navigate a changing regulatory environment without government support.



Read more at Nasdaq: Why Musk’s Clash With Trump Matters for Tesla Investors